A Project Report

On

“Samsung and Nokia Company”

For the subject Principles of Management in the Masters of Business Administration programme at
GLS University

Submitted to
Faculty of Management
By
Anjali Anchliya
Shakshi Surana
Pallavi Surana
Harshit Shah
Meet Vasani
Durgesh Maheswari
Batch: 2021-23
Sem-1
Abstract
Acknowledgement
 Chapter-1: Introduction Of Companies

The Samsung group or Samsung Company is a South

Korean multinational manufacturing conglomerate headquartered in Samsung Town, Seoul,
South Korea. It comprises numerous affiliated businesses, most of them united under
the Samsung brand, and is the largest South Korean chaebol (business conglomerate). As of
2020, Samsung has the 8th highest global brand value Samsung was founded by Lee Byung-
chul in 1938 as a trading company. Over the next three decades, the group diversified into
areas including food processing, textiles, insurance, securities, and retail. Samsung entered
the electronics industry in the late 1960s and the construction and shipbuilding industries in
the mid-1970s; these areas would drive its subsequent growth. Following Lee's death in 1987,
Samsung was separated into five business groups – Samsung Group, Shinsegae Group, CJ
Group and Hansol Group, and Joongang Group.

Notable Samsung industrial affiliates include Samsung Electronics (the world's

largest information technology company, consumer electronics
maker and chipmaker measured by 2017 revenues), Samsung Heavy Industries (the world's
2nd largest shipbuilder measured by 2010 revenues), and Samsung Engineering and Samsung
C&T Corporation (respectively the world's 13th and 36th largest construction
companies). Other notable subsidiaries include Samsung Life Insurance (the world's 14th
largest life insurance company), Samsung Everland (operator of Everland Resort, the
oldest theme park in South Korea) and Cheil Worldwide (the world's 15th largest advertising
agency, as measured by 2012 revenues). Samsung diversified into many different areas. Lee
sought to establish Samsung as a leader in a wide range of industries. Samsung moved into
lines of business such as insurance, securities, and retail. In 2000, Samsung opened a
development center in Warsaw, Poland. Its work began with set-top-box technology before
moving into digital TV and smartphones. The smartphone platform was developed with
partners, officially launched with the original Samsung Solstice line of devices and other
derivatives in 2008, which was later developed into Samsung Galaxy line of devices
including Notes, Edge and other products. In first quarter of 2012, Samsung Electronics
became the world's largest mobile phone maker by unit sales, overtaking Nokia, which had
been the market leader since 1998.

On 24 August 2012, nine American jurors ruled that Samsung Electronics had to

pay Apple $1.05 billion in damages for violating six of its patents on smartphone technology.
The award was still less than the $2.5 billion requested by Apple. The decision also ruled that
Apple did not violate five Samsung patents cited in the case. Samsung decried the decision
saying that the move could harm innovation in the sector. It also followed a South Korean
ruling stating that both companies were guilty of infringing on each other's intellectual
property.In 2015, Samsung has been granted more U.S. patents than any other company –
including IBM, Google, Sony, Microsoft and Apple. The company received 7,679 utility
patents through 11 December.Samsung Galaxy devices use the Android operating
system produced by Google, with a custom user interface called One UI (with previous
versions being known as Samsung Experience and TouchWiz). However, the Galaxy TabPro
S is the first Galaxy-branded Windows 10 device that was announced in CES 2016. The
Galaxy Watch is the first Galaxy-branded smartwatch since the release of later iterations of
the Gear smartwatch from 2014 to 2017. In April 2019, the company announced that it would
postpone the release of its folding smartphone, the Samsung Galaxy Fold, days after several
early reviewers said the screens on their devices had broken; the Fold was rereleased in
September 2019.

In 2020 Samsung added the Samsung Galaxy Chromebook 2-in-1 laptop running Chrome

OS to the Galaxy branding lineup. The follow-on Samsung Galaxy Chromebook 2 was
released in 2021.
Nokia Corporation (natively Nokia Oyj, referred to as Nokia; stylized as NOKIA) is a
Finish multinational telecommunication, information technology, and consumer
electronics company, founded in 1865. Nokia's main headquarters are in Espoo, Finland, in
the greater Helsinki metropolitan area, but the company's actual roots are in
the Tampere region of Pirkanmaa. In 2020, Nokia employed approximately 92,000
people across over 100 countries, did business in more than 130 countries, and reported
annual revenues of around €23 billion. Nokia is a public limited company listed on
the Helsinki Stock Exchange and New York Stock Exchange. It is the world's 415th-largest
company measured by 2016 revenues according to the Fortune Global 500, having peaked at
85th place in 2009.It is a component of the Euro Stoxx 50 stock market index.

The company has operated in various industries over the past 150 years. It was founded as
a pulp mill and had long been associated with rubber and cables, but since the 1990s has
focused on large-scale telecommunications infrastructure, technology development, and
licensing. Nokia made significant contributions to the mobile telephony industry, assisting in
the development of the GSM, 3G, and LTE standards. For a decade beginning in 1998, Nokia
was the largest worldwide vendor of mobile phones and smartphones. In the later 2000s,
however, Nokia suffered from a series of poor management decisions, and soon saw its share
of the mobile phone market drop sharply. After a partnership with Microsoft and Nokia's
subsequent market struggles,Microsoft bought its mobile phone business, creating Microsoft
Mobile as its successor in 2014. After the sale, Nokia began to focus more on its
telecommunications infrastructure business and on Internet of things technologies, marked by
the divestiture of its Here mapping division and the acquisition of Alcatel-Lucent, including
its Bell Labs research organization.The company then also experimented with virtual
reality and digital health, the latter through the purchase of Withings. The Nokia brand
returned to the mobile and smartphone market in 2016 through a licensing arrangement
with HMD Global.Nokia continues to be a major patent licensor for most large mobile phone
vendors.As of 2018, Nokia is the world's third-largest network equipment manufacturer.

The company was viewed with national pride by Finns, as its mobile phone business made it
by far the largest worldwide company and brand from Finland.At its peak in 2000, during
the telecoms bubble, Nokia accounted for 4% of the country's GDP, 21% of total exports, and
70% of the Helsinki Stock Exchange market capital.The company would then be known as a
successful and innovative maker of camera phones. The Nokia 3600/3650 was the first
camera phone on sale in North America in 2003. In April 2005 Nokia partnered with German
camera optics maker Carl Zeiss AG. That same month Nokia introduced the Nseries, which
would become its flagship line of smartphones for the next six years. The Nokia
N95 introduced in September 2006 became highly successful and was also awarded as "best
mobile imaging device" in Europe in 2007. Its successor the N82 featured
a xenon flash, which helped it win the award of "best mobile imaging" device in Europe in
2008. The N93 in 2006 was known for its specialized camcorder and the twistable design that
switches between clamshell and a camcorder-like position] They were also well known for
the N8 with a high-resolution 12-megapixel sensor in 2010; the 808 PureView in 2012 with a
41-megapixel sensor; and the Lumia 920 flagship in 2012 which implemented
advanced PureView technologies.

Nokia was one of the pioneers of mobile gaming due to the popularity of Snake, which came
pre-loaded on many products. In 2002, Nokia attempted to break into the handheld
gaming market with the N-Gage. Nokia's head of entertainment and media, IlkkaRaiskinen,
once quoted "Game Boy is for 10-year-olds", stating that N-Gage is more suited to a mature
audience. However, the device was a failure, unable to challenge the dominant market
leader Nintendo. Nokia attempted to revive N-Gage as a platform for their S60 smartphones,
which eventually launched in 2008.

In Q1 2004, Nokia's mobile phone handset market share steeply dropped to 28.9%, down
from 34.6% a year earlier. However, by 2006 the company was steadily gaining again and in
Q4 2007 reached its all-time high figure of 40.4%. Its smartphone market share in that
quarter was 51%. Nokia was the largest vendor at the time in all regions bar North America.

On 11 February 2011, Nokia announced a "strategic partnership" with Microsoft, under

which it would adopt Windows Phone 7 as its primary operating system on smartphones, and
integrate its services and platforms with its own, including Bing as search engine, and
integration of Nokia Maps data into Bing Maps. Elop stated that Nokia chose not to use
Android because of an apparent inability to "differentiate" its offerings, with critics also
noting that his past ties to Microsoft may have also influenced the decision. Although the
MeeGo "Harmattan"-based N9 was met with a highly positive reception in 2011, Nokia had
already decided to end development on MeeGo and solely focus on its Microsoft partnership,
although the CEO said that the N9's "innovations" will live on in the future, which eventually
made their way on the Asha platform in 2013. After the announcement of the Microsoft
partnership, Nokia's market share deteriorated; this was due to demand for Symbian dropping
when consumers realized Nokia's focus and attention would be elsewhere.
 Chapter-2 Detail of company (Samsung) which is successful

Samsung’s success is largely based on its brand management processes. From its early days
of repositioning the brand from a cheap manufacturer to a brand of class and quality,
Samsung has had a consistent policy of basing all activities in line with its brand strategy.
The company has set an example for the whole industry in brand stewardship, with the
chairman himself constantly managing and nurturing the brand.

From the beginning, Samsung had to fight hard to change customers’ perceptions of it as a
manufacturer of cheap electronic goods. Starting in 1993, Samsung has adopted an aggressive
branding and advertising strategy

Samsung is very successful in the smartphone business because it was one of the first
companies to adapt smartphones and produce phones which catered to the needs of almost all
categories of people.

Back in 2010, along with a flagship model, Samsung launched fifty different models.Each
model fulfilled the needs of a specific group of people.Samsung mobiles became popular for
providing a host of useful features without compromising on quality.Samsung has developed
and is developing many interesting and novel mobile technologies like edge screen displays,
new graphene batteries which can charge completely from 0 per cent to 100 per cent, in just
12 minutes

Though Samsung is known for its great smartphones today, they weren't always so successful
in the field. In the 1980s, Samsung began to explore the cell phone industry, and released its
own mobile phone to the South Korean public in 1988.

However, Samsung did not receive the desired sales, with Motorola, a telecommunications
company founded in 1928, already holding a 60% share in the Korean mobile phone market.
At the time, Samsung only managed to secure itself a 10% hold.

WHY SAMSUNG MOBILE COMPANY IS SUCCESSFULL ?

Samsung was smart enough to realize from the beginning that in order to be successful in the
mobile market, it would need to match Apple on design. The company Galaxy S III, which is
extremely thin and comes with a large display, proves that it knows what it doing. Consumers
can recognize the quality, and that why Samsung sales are so stratospheric.Samsung,
meanwhile, has continued to take advantage by delivering larger screens. The company
Galaxy Tab comes with as big as a 10.1-inch screen. The latest Galaxy S comes with a
massive 4.8-inch display. That matters to consumers and enterprise users alike.

Although Samsungs products arent the cheapest on the market, the company has been able to
show real value in its products. For as little as $200 for a smartphone, consumers are getting a
device. it has shown that it can charge a bit more for a high-quality product. If that werent
the case, Samsung simply wouldnt be as successful today.

Samsung realized that in order to follow suit, it would need to properly brand its smartphones
and tablets. So, it established Galaxy as a consistent brand for high-quality devices. It
worked. And now, its branding is synonymous with quality.Samsung shows that its
impossible to overestimate the value of a trusted company name. Because Samsung offers
trustworthy products in a host of other industries, including appliances and televisions,
consumers are more likely to trust its smartphones and tablets. That worked out well for the
company.

Samsung company is day after day to change technology and research technology. And focus
on brand and research technology.
 Chapter-3 Detail of company (Nokia) which is unsuccessful

At a one time it(Nokia) was successful but today it is unsuccessful reason that mosty not
change and research in technology and day by day not change to and accept technology.
Nokia moved too slowly Nokia was a pioneer in the smart phone market, literally introducing
consumers to the smart phone with its initial Symbian Series 60 devices in 2002. For the next
five years, Symbian phones had little trouble maintaining a leadership position in the smart
phone pack. "They didn’t make the leap of faith onto Windows Phone until 2011. Now they
are suffering from their slow response." – Wayne LamBut in 2007, Apple introduced its
iPhone. With its full touch screen and app-based operating system, the iPhone changed the
very definition of what a smart phone should be. Yet Nokia failed to respond to the iPhone
and the shifting consumer demand that came with it. As the years passed, the Symbian
platform aged, and that age really showed when compared to iOS and, later, Android.
Simultaneously, the smart phone market exploded – more and more consumers opted for
pocket-sized mini-computers instead of "feature" phones with tedious WAP browsers. "When
Apple came out with the iPhone, it showed the industry how the smart phone could be done
right," Wayne Lam, IHS senior analyst, told Wired. "In hindsight, Nokia should have
responded to the iPhone more quickly. Samsung, on the other hand, moved quickly into the
smart phone market. Granted, Samsung had the advantage of working from the ground up,
whereas Nokia had a relatively successful smart phone platform that it just didn't want to give
up. (The same can be said of RIM's Blackberry OS.) "If you look at Samsung a few years
ago, they were nowhere to be found in the smart phone market, whereas Nokia and RIM were
leaders in the smart phone market," Alex Spektor, Strategy Analytics analyst, told Wired.
"It's a lot more difficult to be nimble and react to the changes in the market if you're already a
leading player." Android paid off (for Samsung) and windows phone hasn't ... Yet (for Nokia)
Not only was Samsung speedy, it also bet on multiple platforms, including Android and
Windows Phone – and it even had its own homegrown OS, Bada, just in case none of the
others worked out. But in the end, Android paid off. And it paid off handsomely. "Samsung
chose Android at the right time, and it benefited from the maturation of that platform,"
Spektor said. "Because Samsung has been the dominant player in the Android space, they've
been able to ride the coattails of that platform." Nokia, on the other hand, spent its time
focusing on Symbian until the company's recent partnership with Microsoft. But Nokia's
flagship Lumia Windows Phones haven't paid off yet, as evidenced by Nokia's Q1 earnings
"It was a good partnership on paper, but it was too late – over two years after the introduction
of the iPhone and Android picked up market steam," Lam said.

Nokia didn't have the panache The classic Nokia brick phone – and the Snake game on it –
brings back a lot of nostalgia. But that's a problem. Consumers, especially in developing
markets, associate the Nokia name with a different era of technology. And in today's world,
having the newest and shiniest device is what matters. "Nokia was sort of an older brand;
there wasn't a new panache to it. Samsung, as a marketed brand, was perceived as an
innovator. Nokia has a legacy baggage – they are the traditional brick, candy bar phone
maker," Lam said. Nokia didn't market itself as an innovator, and frankly, it hasn't been doing
much innovating anyway. At least not until it entered the Windows Phone space.

Execution was the key Where Samsung shines brighter than Nokia, and many other
manufacturers, is execution. Samsung mirrored Apple's game plan by dazzling consumers
with a high-end flagship line in its Galaxy S Android phones. "If you look at what Apple's
done really well, it's organizing its phones under the iPhone brand. It's a memorable,
recognizable brand that consumers wait for," Spektor said. "Samsung has adopted a very
similar approach with their flagship phone. Every year, consumers know that a new Galaxy S
is coming. It helps to build up anticipation and drive consumer demand."

But Samsung also has a broad portfolio of smart phone devices, several costing less than
$200 without a contract, which appeals to customers who don't want (or can't afford) a high-
end phone like the Galaxy S or the iPhone. The company also has the advantage in its
hardware manufacturing process. "Unlike other manufacturers, Samsung has the built-in
efficiency of being a vertical company, making their own display, processors, and so on,"
Lam said. While Nokia's execution has been shoddy in recent years, it doesn't mean it can't
make a comeback with Windows Phone. "Nokia and Microsoft are no weaklings, they do
have assets," Lam said. "We believe that there is a good chemistry there with that partnership,
and ultimately long-term Windows Phone will be successful." In the meantime, however,
Nokia is going to go through some rough patches (this week's rough patch included). "They
are in this financial bind, cutting a lot of expenditures, and really focusing on trying to
reinvent in the company. In the short term Nokia will go through trying times," Lam said.

Complacency/satisfaction :- As a market leader for over a decade, Nokia didn’t really plan
for the future as it seemed a bit complacent with its products. When Apple launched the
iPhone in 2007, the first touch phone, Nokia was still priding in its E-series by when the
definition of smart phone had undergone a tremendous change. That was least expected from
the pioneer in the smart phone market. The success of iPhone didn’t have any significant
impact on Nokia, unlike Samsung, which experimented with off-the-shelf technologies and
managed a transition to smart phones much faster than expected. And Nokia, which had
launched its first smart phones through its Symbian series 60 in 2002, remained a pioneer
with no better future prospects. Nokia failed to anticipate, understand or organize itself to
deal with the changing times.

Lack of product innovation :- While Samsung comes up with new phones almost every year
with a slight modification from the previous launch, Nokia’s Windows phone which came in
2011 lacked some basic technology essential to drive its sales. Nokia’s Lumia series was
launched with a bang, but didn’t click. Reasons can be its design, which wasn’t as attractive
as Samsung phones or the iPhone. Today the sale of phones is dependent on how shiny or
trendy it looks. Leave aside the looks, Nokia phones didn’t have the front camera, which
makes it not even 3G enabled. And we are on the threshold of entering the 4G era. So,
Nokia’s latest phones were featuring ready, but not future ready.

Failure of Symbian os and wrong deal with windows:- Nokia launched its Symbian 60 series
in year 2002 which initially had a good market response but with the introduction of Apple
iOS in 2007 and Android in 2008, the OS race was completely taken over by the two giants.
The reasons for collapse of Symbian OS are lack of applications and UI (User Interface).
After facing competition from iOS and Android, Nokia continuously tried to improve their
Symbian OS but it was mostly following the UI of Android and iOS and was not creating
something unique. Secondly, the company failed to look into the need of available
applications in gaining market share. Finally when the tide turned against the company, the
company made the biggest mistake to take a leap of faith in Windows in 2011. At that point
of time, the company already was in declining condition and trusting Windows which was
new in the field to regain its status was the biggest mistake the company made. Lumia series
could have been a hit for the company had they launched on the Android platform. All these
phones which the company launched were comparable to other competitor devices but OS
was the problem which leads to ultimate collapse of company.
Nokia became laggard in smart phone market :- Stiff competition from Samsung and Apple,
and lack on focus on innovation was the second big reason of collapse. Even if users could
ignore the OS, the hardware features which Nokia was rolling out were quiet late as
compared its major competitors Samsung and Apple. Nokia seemed to be lagging in the race.
Where Samsung from nowhere entered the race and focused on innovation as its core
competence to gain the market share, Nokia was very late to realize this fact. Samsung did
everything right to focus solely on product innovation and started competing with Apple in
all product lines from smart phones to tablets, but Nokia failed to develop a focused device
strategy.

Losing market share on both ends Nokia not only failed to realize competition from Apple,
Samsung, Sony, and Blackberry in high end smart phones, they also failed to notice the stiff
competition in the lower segments of phones. Where Nokia was losing charm in high end
phones, the competition from Micromax, HTC, Huawei and ZTE squeezed the company’s
market share in lower segment too. This led to double trouble for the company. The company
which used to have epic models like Nokia 1100 suddenly started losing at lower ends too.
Very lately company realized this thing and launched their Asha series but by that time they
had already lost the game.
 Chapter-4

REASONSWHY NOKIA FAILED AFTER ENJOYING UNRIVALED DOMINANCE

IN THE MOBILE SEGMENT FOR SEVERAL YEARS.

The ferocious and mighty telecom giant Nokia was well known for its products' hardware
and battery life. For years, it was the talk of the town. User satisfaction with Nokia’s mobiles
was globally recognized. The company launched the first internet-enabled phone in 1996 and
by the start of the millennium, Nokia also released a touch-screen mobile prototype.

This was the start of a revolution in the mobile phone industry. The Finnish giant was the
largest cell phone maker in 1998. Nokia overtook Motorola, a move that was hard to predict.
So what exactly happened if all was going well? It wasn’t a single factor but a myriad of
reasons, most of which resulted from Nokia's resistance to change.

We present to you the 6 Main Reasons for the downfall of Nokia.

Here are 6 Reasons Why Nokia failed -

1. The Resistance To Smartphone Evolution

2. The Deal With Microsoft
3. Nokia's Failed Marketing Strategies
4. Moving Too Slow With The Industry
5. Overestimation Of Strength
6. Lack Of Innovation In Products

The Resistance To Smartphone Evolution

Nokia failed to take advantage of the Android bandwagon. When mobile phone
manufacturers were busy improving and working on their smartphones, Nokia remained
stubborn. Samsung soon launched its Android-based range of phones that were cost-effective
and user-friendly. Nokia's management was under the impression that people wouldn’t accept
touch screen phones and would continue with the QWERTY keypad layout.

The Deal With Microsoft

Another reason for Nokia's failure was the ill-timed deal with Microsoft. The company sold
itself to Microsoft at a time when the software behemoth was fraught with losses. Nokia's
sales screamed the mobile phone maker's inability to survive on its own. At the same time,
Apple and Samsung were making significant strides in innovation and technical
developments. It was too late for Nokia to adapt to the dynamic and rigorous changes in the
market. Microsoft’s acquisition of Nokia is considered to be one of the biggest blunders and
wasn't fruitful for either side.

Nokia's Failed Marketing Strategies

Generally, a startup fails because of bad marketing strategy and the same happened with
Nokia. The company followed an unsuccessful strategy of umbrella branding. Apple was the
first company to apply the umbrella branding model with the iPhone at the top. It kept adding
new models to this umbrella year after year. Samsung followed the same route by launching
the Samsung Galaxy series but Nokia failed to take cues. The user trust Nokia built over the
years was gradually waning. The company was inefficient in its selling and distribution
methods. Seeing the mess, Nokia decided to come up with some fascinating hardware and
software innovations. However, these were already released by Nokia's rivals and lacked the
uniqueness. Failure in Nokia’s marketing and distribution strategies played a significant role
in its elimination from the mobile industry.

Moving Too Slow With The Industry

Nokia never kept pace with changing technology and trends. Nokia was always famous for its
hardware and didn’t pay much attention to its software line-up. Initially, the company
overlooked technical advancements to avoid the risks associated with bringing innovation in
phones. The business needed diversion but it was too late by the time Nokia realized this.
Instead of being amongst the early initiators, Nokia transitioned when almost every major
brand had already started producing awesome phones.

Overestimation Of Strength
Nokia overestimated its brand value. The company believed that even after the late launch of
its smartphones, people would still flock to stores and purchase Nokia-manufactured phones.
A misconception! People still make predictions of Nokia retaining the market leadership if it
adapts to
and accepts Android or uses better software at its core. However, this is far from the truth as
seen today. The company got stuck with its software system that is known to have several
bugs and clunks. Nokia felt its previous glory would help alleviate any sort of trouble.
Unfortunately, things didn’t play out that way

Lack Of Innovation In Products

The lack of innovation in its products only added to Nokia's woes. While brands like
Samsung and Apple came up with advanced phones every year, Nokia simply launched the
Windows phone with basic features. The Nokia Lumia series was a jump-start measure, but
even that collapsed due to lack of innovation. The unattractive and dull features didn’t help.
In the era of 4G, Nokia didn’t even have 3G-enabled phones. Nokia also came up with the
Asha series but it was game over by then.
Wrong decisions and risk aversion brought the decline of the mobile giant. Nokia refrained
from adopting the latest tech. Nokia's failure became a case study that made organizations
realize the importance of continuous evolution and enhancements. The journey of what was
once the world’s best mobile phone company to losing it all by 2013 is quite tragic. Nokia
also strongly lacked leadership and guidance.

Why Nokia Failed?

Nokia failed to keep pace with changing customers' needs and did not want to adapt to the
market dynamics. Instead of adopting Android (like everyone else at the time), it stubbornly
stuck with Symbian. Nokia also failed to update its software offerings and only focused on
hardware.

Is Nokia a Chinese company?

No. Nokia is a company based in Finland and was recently taken over by HMD Global.

What does Nokia mean?Nokia is the name of a river in Finland.

What is the main reason for Nokia Failure?

Reasons why Nokia Failed -

● Nokia failed to take advantage of the Android bandwagon.Instead of adopting
Android, it stubbornly stuck with Symbian.
● The Nokia Lumia series was a jump-start measure, but even that collapsed due to lack
of innovation.
 ● Nokia overestimated its brand value
● Initially, Nokia overlooked technical advancements to avoid the risks associated with
bringing innovation in phones.
● Another reason for Nokia's failure was the ill-timed deal with Microsoft. The
company sold itself to Microsoft at a time when the software behemoth was fraught
with losses.

Is Nokia Android?

Yes, Nokia smartphones come with Android. The Lumia series that once used a Windows-
based operating system has been discontinued. The new variations are Android-based.
 Chapter-6: CSR Activities undertaken by Companies
In recent years, corporate social responsibility has been an increasingly popular topic. More and
more companies notice the importance of corporate social responsibility. Because consumers are
not only paying attention to the products like before, but also scrutinizing your brands now. In order
to maintain respected brands, CSR is a good way for organizations to evaluate their impact on the
world around them, and to make changes that create positive effects in their communities.

Samsung Corporate Social Responsibility Activities

Samsung Corporate Social Responsibility (CSR) programs and initiatives are facilitated through the
Sustainability Management Council, which consists of 14 related departments that handle issues
from 10 different areas, including society and the environment.

1. Samsung Global Code of Conduct is based on the following principles:

2. Compliance with laws and ethical standards
3. Maintenance of clean organizational structure
4. Respecting customers,shareholders and employees
5. Caring for the environment, health and safety
6. Being socially responsible corporate citizen

CSR aspect of the business is managed by Samsung CSR Committee. The company releases Supplier
Responsibility Progress Report annually and it includes the details of CSR programs and initiatives
engaged by the company. Samsung Electronics addresses CSR aspects of the business in four
directions: social contributions, green management, health and safety and sharing growth.

Samsung Supporting Local Communities

1. C o n t r i b u t i o n i n E d u c a t i o n S e c t o r

Samsung Tech Institute encourages independence and self-reliance among young adults via
systematic vocational education. The initiative had 39,659 beneficiaries by the end of 2015.

Samsung SMART School addresses an important gap in the global education by improving
educational environment for students residing in disadvantaged areas. In 2015 alone 224,753
students attended Samsung SMART School.

Samsung Solve for Tomorrow is a program that aims to tackle important social issues. The program
engages students and non-profit organizations to identify the most pressing social problems and to
find and to implement solutions to these problems

Contribution in Health Care Industry

Samsung Care Drive facilitates a range of healthcare programs in order to deal with the help of
technology. As of 2014, the company had 30 active programs primarily in China, Russia, and several
countries in Africa.

Contribution in Infrastructure

Samsung Nanum Village aims to target the roots of poverty via providing an effective infrastructure
to socially disadvantaged segments of the population. Within the scope of this program,
partnerships are formed with national and local governments to provide an extensive support for
education infrastructure, medical facilities, clean water and the construction of community centres.

An average number of Samsung employee volunteering hours amounted to 11.3 hours during 2014

Contribution in Child Welfare

In Korea Samsung opened the sixth House for Hope in 2015 to improve the conditions of local
community child centres

2. S a m s u n g E d u c a t i n g a n d E m p o w e r i n g W o r k e r s

Employee benefits provided in Korea and abroad in 2015 totalled to KRW 3.853 billion

Training time per employee in 2015 amounted to 78 hours

Samsung Career Consulting Centre has been used by 5,500 people

Samsung conducts its STaR (Samsung Talent Review) Sessions in association with its EDP (Expertise
Development Process) annually. It is a talent nurturing process that supports employees in designing
an individual career path and establishing a clear vision with their supervisor. In Korea alone 2000
employees undergo STAR sessions annually.

3. L a b o u r a n d H u m a n R i g h t s a t S a m s u n g

The company conducted 235 supplier inspections for child labour prevention in China in 2015

In Malaysia Guidelines for Migrant Workers in cooperation with Business for Social Responsibility
(BSR) to help eradicate forced labour

4. E m p l o y e e H e a l t h a n d S a f e t y a t S a m s u n g

Building health and safety management systems is a matter of priority for Samsung. The company
complies with OHSAS 18001 standard for occupational health and safety management systems
across its workplaces around the globe.

Samsung attempts to operate its workplaces in safe conditions at all times. A continuous monitoring
and improvement has been instituted and accordingly, the company organizes occasional emergency
scenarios for the occasions of harmful chemical substance spills, fires, explosions and natural
disasters.

Samsung supports employee health and safety by constructing ergonomic applications in the
working environment and prohibiting business trips to regions with high risks for infectious diseases
such as Ebola and MERS

5. S a m s u n g a n d G e n d e r E q u a l i t y a n d M i n o r i t i e s

Disabled employment rate by the multinational electronics company amounted to 1.6%, 1.68% and
1.7% in 2013, 2014 and 2015 respectively

The table below illustrates changes in ratio of female employees by job function during the past
several years.
Table 1. Ratio of female employees by job function
 

6. W a s t e R e d u c t i o n a n d R e c y c l i n g b y S a m s u n g

Samsung collected a total of 2.26 million tons of waste products from 2009 to 2015, and aims to
collect 3.8 million tons (cumulative) of waste products by 2020.

In 2015, the company applied a total of 34,322 tons of recycled plastics (6.3 percent of total plastic
use) to monitors, printers, washing machines, refrigerators, vacuum cleaners, and earphone cases

7. C a r b o n E m i s s i o n s b y S a m s u n g

Within the scope of Eco-Management 2020 and Planet First initiatives introduced by Samsung,
greenhouse emissions were reduced by 70% and accumulated 250 million tons of greenhouse gas
reduction was achieved since 2008.

Green communications initiative that aims to share the value of Samsung Green Management
implemented various open projects around the globe. These include environmental educational
courses and events and support of employee interests to participate to such events.

The company operates green workplaces by reducing greenhouse gas emissions and usage water, as
well as, increasing waste recycling in its offices.

Samsung achieved cumulative 156 million tons green house gas (GHG) reduction at product use
stage during the period 2009 – 2015.

8. W a t e r C o n s u m p t i o n b y S a m s u n g

The flow of water resources by Samsung is illustrated in figure below.

 Fig 1. Flow of water resources at Samsung Electronics

9. S a m s u n g a n d S u s t a i n a b l e S o u r c i n g  

Samsung maintains Supplier Consulting Team that comprises a roster of 100 of directors and
executives in the fields of manufacturing, product, development and quality control.

The company operates a Shared Growth Fund of KRW 1 trillion to help improve business for
suppliers that find it difficult to secure funding.

Seven Shared Growth Implementation Plan introduced in 2010 is an attempt to develop a win-win
partnership with suppliers. Win-Win Partnership Academy instituted by Samsung aims to assist its
suppliers to improve their businesses.

10. S a m s u n g o t h e r C S R I n i t i a t i v e s a n d C h a r i t a b l e D o n a t i o n s

Developing green technology and products is adapted as one of the core principles by the company
in terms of reducing its environmental impact. Samsung has received certifications for an
accumulated 3,027 product models as of the end of 2014, from 11 nations including Korea, the US,
China and European countries.